As Apple's WWDC conference kicks off, investors want to know if AI will save Siri

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CUPERTINO, California, June 8 : Apple on Monday will test its standing in the AI race, with analysts expecting the iPhone maker to open its developer conference with a long-awaited Siri overhaul and tools to tap the computing power of its 2.5 billion devices.

Apple has been seeking to close a gap with rivals such as Microsoft and Alphabet's Google, which have moved faster to embed “agentic” AI — software that can carry out complex tasks — into everyday computing.

The question is how far Apple is willing to go. The company has long kept tight control over its software and user data, and has taken a cautious approach to AI, leaning in part on partnerships, including with Google’s Gemini models, to power new capabilities.

That caution contrasts with competitors betting on AI agents that could eventually replace traditional apps and reshape how people use their devices. Rivals such as Microsoft have teased a future where AI "agents" supersede traditional operating systems and apps, and Nvidia is working with PC makers to offer laptops that would directly target Apple's own high-end MacBooks.

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"Agents are critical, as they can potentially become the primary touch point of how consumers interact with their devices," said Tarun Pathak, research director at Counterpoint Research. "The era of Agentic AI may pan out very differently from the way we think, but it's too big a risk to miss out and Apple must follow swiftly."

APPLE'S SPENDING PIVOT

Apple’s slower approach, though, has meant the company has so far avoided the massive spending on data centers seen at rivals. But it may now be shifting gears, with financial chief Kevan Parekh saying on Apple's latest earnings conference call that the company would end its longtime goal of returning its spare cash directly to shareholders, signaling room for greater investment.

But in chasing AI, Apple possesses something held by few of its rivals: powerful chips in many of its phones and laptops that can run AI agents for free because consumers already paid for the computing power when they purchased the device. Apple also has a massive trove of personal data sitting on iPhones.

Apple's Worldwide Developers Conference, its premier annual event to showcase the latest software, operating systems and developer tools, kicks off at 1700 GMT in Cupertino, California, on Monday.

SIRI'S TRANSFORMATION CHALLENGE

Analysts say Apple's challenge on Monday is to successfully let Siri, which Apple is rebuilding with help from Google's Gemini AI model, become smarter and more useful on the basis of that personal data.

"A more capable, context-aware, and everyday-useful Siri would be a game changer for Apple," said Dipanjan Chatterjee, vice president and principal analyst at Forrester.

Analysts expect plenty of new features for developers, including new tools to let Siri talk to apps and new ways to tap in to the company's custom chips. But they also expect Apple not to dwell too long, if at all, on industry buzzwords such as "tokens" - a measure of AI computing that Nvidia CEO Jensen Huang often mentions. Instead, Apple is likely to show customers what AI can achieve for them.

"The company’s historical strength has been translating complex technologies into intuitive experiences that customers actually use," Chatterjee said. Apple will "continue shifting the AI narrative away from technology toward an experience story, where success is measured by usefulness, simplicity and trust rather than technical specifications."

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